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A local authority rewards offices only for the number of applications processed. Some offices begin processing simple applications first while complex cases remain pending. What does this demonstrate?

Answer and explanation

Correct answer: A narrowly defined performance target can encourage behaviour that neglects other goals

When rewards depend on a single indicator, organisations may prioritise activities that improve that indicator. Evaluating fairness and case complexity alongside processing totals can reveal unintended incentives.

Related tags

Performance IndicatorsInstitutional IncentivesPublic AdministrationPolicy Effects

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